Marketing 4th Canadian Edition By Grewal – Test Bank

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Description Marketing 4th Canadian Edition By Grewal – Test Bank Sample Questions Instant Download With Answers Chapter 03 Analyzing the Marketing Environment

Multiple Choice Questions 1.

Which of the following is the goal of value-based marketing?

A.satisfy customers by offering the best price in the market B. satisfy employees by offering the best benefits C. satisfy investors by offering the best ROI D. offer greater value to consumers than competitors E. differentiate product offerings Customers are at the heart of all marketing programs and efforts; value-based marketing aims to provide greater value to consumers than competitors offer.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-01 Outline how the factors in a firm’s microenvironment influence its marketing strategy.

Topic: 03-01 A Marketing Environment Analysis Framework 2.

Which of the following is NOT a microenvironmental factor?

A.company B. corporate partners C. consumers D. competition E. capabilities Customers are not considered a microenvironmental factor.

Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: Moderate Learning Objective: 03-01 Outline how the factors in a firm’s microenvironment influence its marketing strategy.

Topic: 03-02 Microenvironmental Factors

3.

Walmart’s effective distribution network is at the heart of its success. This describes which factor of a Walmart consumers’ microenvironment?

A.Competition B. partners C. place D. company capabilities E. culture The first factor in the firm’s microenvironment is the firm and its capabilities. Effective distribution network is an example.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-01 Outline how the factors in a firm’s microenvironment influence its marketing strategy.

Topic: 03-03 Company Capabilities 4.

When firms collect and synthesize information about their position with respect to their rivals, it is called: A.bid rigging.

B. exclusive dealing.

C. bait-and-switch.

D. generational cohort.

E. competitive intelligence.

Competitive intelligence (CI) is used by firms to collect and synthesize information about their position with respect to their rivals; it enables companies to anticipate changes in the marketplace rather than merely react to them.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-01 Outline how the factors in a firm’s microenvironment influence its marketing strategy.

Topic: 03-04 Competition 5.

A car manufacturing company is keenly monitoring the announced cuts or increases in the rival companies’ production volume, sales, and sales incentives. It uses this information to plan its own marketing, pricing, and production strategies.

This is an example of: A.bid rigging.

B. unethical behaviour C. bait-and-switch.

D. corporate partners E. competitive intelligence.

Competitive intelligence (CI) is used by firms to collect and synthesize information about their position with respect to their rivals; it enables companies to anticipate changes in the marketplace rather than merely react to them.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-01 Outline how the factors in a firm’s microenvironment influence its marketing strategy.

Topic: 03-04 Competition 6.

Marriot International sends employees to stay at its rival competitor, Hilton Hotels & Resorts, to monitor new services and experiences Hilton offers to the customers. This is an example of: A.company capabilities B. monitoring C. corporate partners D. competition intelligence E. unethical behaviour Competitive intelligence (CI) is used by firms to collect and synthesize information about their position with respect to their rivals; it enables companies to anticipate changes in the marketplace rather than merely react to them.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-01 Outline how the factors in a firm’s microenvironment influence its marketing strategy.

Topic: 03-04 Competition 7.

Jordan Inc., an online retail firm, wanted to determine the development strategy of its rival company. Tapping into some online discussion groups, Jordan came to know that its rival had posted 20 job openings online. This move was indicative of the rival company’s development strategy. Which of the following is being used by Jordan to gather information about its rival firm’s strategy?

A.bid rigging B. unethical behaviour C. bait-and-switch D. corporate partners E. competitive intelligence Competitive intelligence (CI) is used by firms to collect and synthesize information about their position with respect to their rivals; it enables companies to anticipate changes in the marketplace rather than merely react to them.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 03-01 Outline how the factors in a firm’s microenvironment influence its marketing strategy.

Topic: 03-04 Competition 8.

Which of the following is NOT a macroenvironmental factor?

A.competitors’ practices B. political environment C. economic situation D. technological advances E. social trends Macroenvironmental factors (CDSTEP) are: culture, demographics, technological advances, social trends, economic situation, and political/legal environment.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-06 Macroenvironmental Factors 9.

Which of the following refers to the visible nuances such as artifacts, behaviour, dress, symbols, physical settings, ceremonies, language differences, colours and tastes, and food preferences?

A.Generational cohort B. Country culture C. Demographics D. Political environment E. Competitive intelligence The visible nuances of a country’s culture, such as artifacts, behaviour, dress, symbols, physical settings, ceremonies, language differences, colours and tastes, and food preferences, are easy to spot. But the subtle aspects of culture generally are trickier to identify and navigate.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-07 Culture 10.

Which of the following refers to the way people in a particular country react to different cultural rituals in accordance with their place of residence?

A.Competitive intelligence B. Country culture C. Demographics D. Generational cohort E. Regional subculture

The region in which people live in a particular country affects the way they react to different cultural rituals, or even how they refer to a particular product category. This concept is termed “regional subculture.”

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-07 Culture 11.

Canadian national food includes poutine and butter tarts. Canada is the world’s largest producer of maple syrup. The music of Canada reflects the many influences that have shaped the country. The official symbols of Canada include the maple leaf and the beaver. Which of the following best exemplifies the given information?

A.Competitive intelligence B. Country culture C. Generational cohort D. Demographics E. Regional subculture Country culture includes easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colours, and food preferences, and more subtle aspects, which are trickier to identify.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-07 Culture 12.

Quebec women have a higher demand for high quality clothes compared to other parts of Canada. Which of the following best related to this statement?

A.country culture B. demographics C. regional subculture D. generational cohort E. social trends Regional subculture refers to the region in which people live affects the way they react to different cultural rituals.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-07 Culture

13.

The fact that Canada is a nation with two official languages and that humour is an integral part of its arts scene is an example of: A.regional subculture.

B. country culture.

C. generational cohort.

D. competitive intelligence.

E. demographics.

Country culture includes easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colours, and food preferences, and more subtle aspects, which are trickier to identify.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-07 Culture 14.

Mary, Jane, and Brad were all born the year after World War II. Leisure time is a high priority for them. They have an obsession with maintaining their youth and love rock ‘n’ roll. They belong to the generational cohort of: A.baby boomers.

B. millenials.

C. Generation X. D. Generation Y. After World War II, the birth rate in Canada rose sharply, resulting in a group known as the baby boomers. They are individualistic. Their leisure time is highly prioritized. They maintain their youth and love rock ‘n’ roll.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 15.

Morgan Inc.’s clothing line has different divisions for children, tweens, and senior citizens. If Morgan bases its production requirements primarily on the age group of its target audience, its market segmentation is most likely to be relying on: A.political environment.

B. social trends.

C. demographics.

D. technological advances.

E. culture.

Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets, such as age, gender, income, race, ethnicity, and education.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 16.

Misha and Jenny are both 11 years old and spend their money mainly on food and drinks, digital music players, cellphones, computers, and clothing. They are likely to belong to which cohort?

A.Tweens B. Generation Y C. Generation X D. Baby boomers E. Seniors Tweens—not quite teenagers but not young children either—sit in between. In Canada, tweens spend their money mainly on food and drinks, electronics (gaming consoles and games, digital music players, cellphones, and computers) and clothing.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 17.

Which of the following refers to a group of people of the same generation who typically have similar purchase behaviours because they have shared experiences and are in the same stage of life?

A.Generational cohort B. Country culture C. Competitive intelligence D. Greener consumers E. Ethnicity A group of people of the same generation, generational cohorts, have similar purchase behaviours because they have shared experiences and are in the same stage of life. For instance, baby boomers, made up of people born between 1946 and 1965, and Gen Xers, people born between 1966 and 1971, both gravitate toward products and services that foster a casual lifestyle; however, they tend to do so for different reasons.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 18.

Which of the following is true of the generational cohort of tweens?

A.Tweens include people between the ages of 13 and 32.

B. Tweens include people born after World War II who are between the ages of 48 and 66.

C. Tweens include people aged 65 and older.

D. Tweens include people aged 9 to 12 years.

E. Tweens include people between the ages of 36 and 47.

Tweens—not quite teenagers but not young children either—sit in between. Marketers feel the tween effect in many areas, but particularly in the cellphone market.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 19.

Which of the following is true of Generation X? A.They are less likely to believe in advertising claims or what salespeople tell them.

B. They are more interested in status products than older generations.

C. They are more likely to enjoy greater prosperity than their parents.

D. They have little knowledge about products in the market.

E. They are more interested in shopping than their parents.

Gen Xers possess considerable spending power because they tend to wait to get married and buy houses later in life. However, they are unlikely to enjoy greater prosperity than their parents. They’re much less interested in shopping than their parents and are far more cynical, which tends to make them astute consumers. They demand convenience and tend to be less likely to believe advertising claims or what salespeople tell them.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 20.

Bill is 40 years old. He is much less interested in status products than his parents and is less likely to believe in advertising claims. He shares his characteristics with: A.baby boomers.

B. Generation Y. C. Generation X. D. tweens.

E. seniors.

Gen Xers possess considerable spending power because they tend to wait to get married and buy houses later in life. They demand convenience and tend to be less likely to believe advertising claims or what salespeople tell them. They are also much less interested in status products than older generations, not because they can’t afford luxury brands but because they just don’t see the point.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 21.

Jack is a 60-year-old resident of Texas. He is self-reliant and individualistic. While making decisions about purchasing products, he lays more emphasis on quality than price. He shares his characteristics with: A.baby boomers.

B. Generation Y. C. Generation X. D. tweens.

E. seniors.

Baby boomers are individualistic. Retailers note that their older customers (baby boomers), even those with moderate incomes, are more focused on quality than price.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 22.

Which of the following statements is NOT true of Generation Y? A.They belong to the generational cohort of people born between 1972 and 1992 B. They are the biggest cohort since the original postwar baby boom.

C. They grew up in a more brand-conscious era than their parents.

D. They value convenience and tend to be less likely to believe advertising claims.

E. They love digital electronics.

Generation Y, also called millennials or the “echo boom” generation, represent just over 9 million Canadians, or about 27 percent of the population. This group also varies the most in age, ranging from people in their 20s to people in their 40s who have started their own families.

Gen Xers demand convenience and tend to be less likely to believe ad claims.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Difficult Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 23.

Which of the following statements is true of Generation X? A.They belong to the generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom.

B. They belong to the generational cohort of people born after World War II who are between the ages of 48 and 66.

C. They belong to the generational cohort of people aged 65 and older.

D. They belong to the generational cohort of people who are not quite teenagers but

are not young children either.

E. They belong to the generational cohort of people born between 1966 and 1971.

Generation X includes people born between 1966 and 1971. This group represents more than 2.8 million Canadians, or about 8 percent of the Canadian population.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 24.

Which of the following generational cohorts is also referred to as the echo boom generation?

A.Tweens B. Generation Y C. Generation X D. Baby boomers E. Seniors Generation Y, also called millennials or the “echo boom” generation, represent just over 9 million Canadians, or about 27 percent of the population.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 25.

Which of the following generational cohorts is also referred to as the first generation of latchkey kids?

A.Tweens B. Generation Y C. Generation X D. Baby boomers E. Seniors Unlike their baby boomer parents, Gen X is the first generation of latchkey kids (those who grew up in homes in which both parents worked), and 50 percent of them have divorced parents.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics

26.

Latchkey kids are those children who: A.were left orphaned after the death of their biological parents.

B. grew up in foster homes because of the inability of their parents to take care of them.

C. grew up in homes with a stepmother or a stepfather.

D. grew up in homes in which both parents worked.

E. grew up in single-parent homes.

Unlike their baby boomer parents, Gen X is the first generation of latchkey kids (those who grew up in homes in which both parents worked), and 50 percent of them have divorced parents.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 27.

Venus and Jake have been married for three years. Venus is 30 years old, and Jake is 28. They are Internet and technology savvy. They use the Internet at work for personal reasons and expect a healthy option at fast-food restaurants. They are likely to belong to which cohort?

A.Tweens B. Generation Y C. Generation X D. Baby boomers E. Seniors Regardless of where they live, members of Generation Y watch an hour less TV than an average household, use the Internet at work for personal reasons, and expect a healthy option at fast-food restaurants. Gen Yers are Internet and technology savvy and love digital electronics such as cellphones, digital music players, digital cameras, and video games.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 28.

Megan is 40 years old and heads an advertising firm. She grew up in a home in which both parents worked. Although Megan possesses considerable spending power, she is much less interested in shopping than her parents and is far more cynical, which tends to make her an astute consumer. Megan takes a long vacation every summer and travels to different parts of the world. She is likely to belong to which cohort?

A.Tweens B. Generation Y C. Generation X

D. Baby boomers E. Seniors Generation X is the first generation of latchkey kids (those who grew up in homes in which both parents worked). Gen Xers possesses considerable spending power because they tend to wait to get married and buy houses later in life. However, they are unlikely to enjoy greater prosperity than their parents. They’re much less interested in shopping than their parents and are far more cynical, which tends to make them astute consumers.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 29.

Which of the following statements is true of baby boomers?

A.They belong to the generational cohort of people born between 1972 and 1992.

B. They belong to the generational cohort of people born between 1946 and 1965.

C. They belong to the generational cohort consisting of people aged 65 and older.

D. They belong to the generational cohort of people who are not quite teenagers but are not young children either.

E. They belong to the generational cohort of people born between 1966 and 1971.

After World War II, the birth rate in Canada rose sharply, resulting in a group known as the baby boomers, who were born between 1946 and 1965. They are the largest cohort of Canadians, representing 30 percent of the population.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 30.

Joe is 65 years old. He is highly individualistic and invests in health and wellness products. He loves to indulge in products and services that help him maintain his youth. Joe belongs to the category of: A.Gen X. B. Gen Y. C. tweens.

D. baby boomers.

E. seniors.

After World War II, the birth rate in Canada rose sharply, resulting in a group known as the baby boomers, who were born between 1946 and 1965. Baby boomers are individualistic. They have an obsession with maintaining their youth.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 31.

Which of the following statements is true of seniors?

A.They belong to the generational cohort of people between the ages of 13 and 32 and the biggest cohort since the original postwar baby boom.

B. They belong to the generational cohort of people born after World War II who are between the ages of 48 and 56.

C. They belong to the generational cohort consisting of people aged 65 and older.

D. They belong to the generational cohort of people who are not quite teenagers but are not young children either.

E. They belong to the generational cohort of people between the ages of 36 and 47.

Seniors are over the age of 65 and make up Canada’s fastest-growing group. Between 2006 and 2011, the number of seniors in Canada grew from 4.3 million to nearly 5 million.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 32.

Which of the following is a characteristic of people belonging to the baby boomer generation?

A.They are individualistic.

B. They are workaholics.

C. They abhor youth, which they equate with immaturity.

D. They love pop.

E. They are gutted by a feeling of economic and psychological insecurity.

After World War II, the birth rate in Canada rose sharply, resulting in a group known as the baby boomers, who were born between 1946 and 1965. They are individualistic.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 33.

Nate, born in 1960, is very individualistic. He ensures he has enough leisure time to pursue his interests. He is obsessed with maintaining his youth and loves rock ‘n’ roll. If these traits are typical of those of his generation, he is likely to belong to which cohort?

A.Tweens B. Generation Y C. Generation X

D. Baby boomers E. Seniors Baby boomers are individualistic and have an obsession with maintaining their youth.

Leisure time is a high priority for them. They will always love rock ‘n’ roll.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 34.

Diana is 66 years old. While shopping for products, she prefers to buy recognizable brands and is extremely quality conscious. Diana also prefers to shop at convenient locations. Which of the following generational cohorts does she belong to?

A.Tweens B. Generation Y C. Generation X D. Baby boomers E. Seniors Seniors are over the age of 65 and make up Canada’s fastest-growing group. They’re typically loyal and willing to spend but are extremely quality conscious and demand hassle-free shopping, particularly in terms of convenient locations.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 35.

Sue is offering home cleaning services and found out that WOM and referral work much better to promote her business than advertising. Which of the following generational cohorts is most likely the main target market?

A.Tweens B. Generation Y C. Generation X D. Baby boomers E. Seniors Generation X demands convenience and tends to be less likely to believe advertising or salespeople promises. WOM advertising from people they know works better for this group.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain

how they influence the overall marketing strategy.

Topic: 03-08 Demographics 36.

Which of the following statements is true of upper-class consumers?

A.Their family income is usually between $20,000 and $30,000.

B. They rely on assistance to cover their basic needs.

C. They primarily perform clerical jobs.

D. They tend to be careful about their spending and are often value conscious.

E. Their spending patterns are not influenced by economic conditions.

Upper-class consumers are very affluent, and their spending patterns are not influenced by economic conditions.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 37.

Which of the following statements is true of middle-class consumers?

A.Their family income is usually between $20,000 and $30,000.

B. They rely on assistance to cover their basic needs.

C. They have very high discretionary incomes and tend to purchase luxury items.

D. They tend to be careful about their spending and are often value-conscious.

E. Their spending patterns are not influenced by economic conditions.

Middle-class families can afford a good life most of the time. They tend to be careful about their spending and are often value conscious.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 38.

Which of the following statements is true of working-class consumers?

A.Their family income is usually between $20,000 and $30,000.

B. They are more likely to be highly educated.

C. They are more likely to work in managerial and executive roles.

D. They have high discretionary incomes.

E. Their spending patterns are not influenced by economic conditions.

Working-class, or low-income families, earn between $20,000 and $30,000, barely sufficient income to cover their basic needs.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain

how they influence the overall marketing strategy.

Topic: 03-08 Demographics 39.

Which of the following statements is true of the income of Canadians?

A.Family income distribution in Canada is similar across its provinces.

B. Underclass Canadians are just above poverty.

C. The majority of the Canadians fall in the middle-class category.

D. The richest 20 percent of Canadians spend 5 or 6 times more than the poorest 20 percent of Canadians.

E. Most families experienced real income growth after 1980, and their health care costs, property taxes, and tuition bills have risen at a much slower rate than inflation.

According to a report by Statistics Canada, the richest 20 percent of Canadians spend 5 or 6 times more in every shopping category than the poorest 20 percent of Canadians.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 40.

Megan and John have been married for 10 years. Megan is the vice-president of a bank, and John is an investment banker. They enjoy a combined income of more than $100,000. Megan loves art. She buys paintings of renowned painters in auctions all over the world. Which of the following categories do they belong to?

A.Underclass consumers B. Upper-class consumers C. Working-class consumers D. Middle-class consumers E. Lower-class consumers Upper-class consumers are very affluent, and their spending patterns are not influenced by economic conditions. They have high discretionary incomes and tend to purchase luxury items. The top 10 percent of Canadians have family income in excess of $80,000.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 41.

Jack is a teacher and his wife, Meg, works as an assistant in a research laboratory. They have a combined income of $68,000. They have a house on mortgage and take long vacations once every four years. They are value conscious.

Which of the following categories do they belong to?

A.Underclass consumers B. Upper-class consumers C. Working-class consumers D. Middle-class consumers E. Lower-class consumers

Middle-class families earn between $30,000 and $70,000. They tend to be careful about their spending and are often value conscious.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 42.

Bruce is a part-time janitor. Maria washes dishes in a restaurant. They have a combined income of $30,000. They are barely able to make ends meet because they have three small children. Which of the following categories do they belong to?

A.Underclass consumers B. Upper-class consumers C. Working-class consumers D. Middle-class consumers E. Upper-middle-class consumers Working-class, or low-income families, earn between $20,000 and $30,000, barely sufficient income to cover their basic needs.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 43.

Philip lives with his wife Emma and four children in a rented single-room apartment. They live below poverty and take aid of the social security provided by the government. Which of the following categories do they belong to?

A.Underclass consumers B. Upper-class consumers C. Working-class consumers D. Middle-class consumers E. Lower-class consumers Canadians may be classified into distinct groups based on their income and other factors such as background, education, and occupation: upper class, middle class, working class (or low-income earners), and underclass (at or below poverty).

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics

44.

Which of the following statements is true of the effect of changing gender roles in society on marketers?

A.Absence of the role of father in commercials for children’s goods B. Increase in advertisements involving single mothers C. Gender neutrality in the positioning of products D. Discouraging the trend of transcending gender boundaries E. Portraying women as more competent than men The shift in gender roles, attitude, and behaviour affects the way many firms design and promote their products and services. For example, more firms are careful about gender neutrality in positioning their products and, furthermore, attempt to transcend gender boundaries whenever they can.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 45.

Which of the following holds true for ethnic groups who have migrated to Canada?

A.Ethnic Canadians spend less than their white counterparts on big-ticket items such as cars, clothing, and home furnishings.

B. South Asian and Chinese immigrants are typically young, educated, and wealthy.

C. Currently, less than 2 percent of all visible minorities in Canada are under 14 years.

D. Migrated ethnic groups account for nearly 10 percent of Canada’s population growth.

E. Russians represent the fastest-growing ethnic group in Canada.

The two fastest-growing groups are the Chinese (from Hong Kong, mainland China, and Taiwan) and South Asians (from India, Pakistan, Sri Lanka, and Bangladesh). The groups of South Asians and Chinese are typically young, educated, and wealthy.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 46.

The two fastest-growing ethnic groups who have migrated to Canada are the: A.Russians and the South Americans.

B. Europeans and the South Americans.

C. Arabs and the Africans.

D. Chinese and the South Asians.

E. Africans and the Europeans.

The two fastest-growing groups are the Chinese (from Hong Kong, mainland China, and Taiwan) and South Asians (from India, Pakistan, Sri Lanka, and Bangladesh). The groups of South Asians and Chinese are typically young, educated, and wealthy.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics 47.

The fact that many of today’s commercials for children’s gear now include Dad interacting with the kids and being involved in purchase decisions reflects: A.that men earn more money than women.

B. the increasing generational gap in Canadian households.

C. the importance that marketers are giving to changing gender roles.

D. that higher levels of education lead to better jobs and higher incomes.

E. the change in the gender composition of a country.

The days of commercials that show Mom alone with the kids are over. To reflect changing family roles, commercials for most children’s gear now include Dad interacting with the kids and being involved in purchase decisions.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 03-02 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy.

Topic: 03-08 Demographics Chapter 05 Business-to-Business Marketing

Multiple Choice Questions 1.

Business-to-business marketing involves transactions between: A.firms that market goods and services and the ultimate consumers.

B. local and federal governments and the consumers.

C. firms that market goods and services and other businesses.

D. firms that provide products and services and their employees.

E. firms that market goods and services and their union members.

Business-to-business (B2B) marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers. Therefore, B2B marketing involves manufacturers, wholesalers, retailers, and service firms that market goods and services to other businesses but not to the ultimate consumer.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy

Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-01 B2B Markets

2.

Which of the following is an example of business-to-business marketing?

A.A travel agency offering services such as booking tickets and hotel accommodations to the ultimate consumers B. eBay offering various online auction and other services to consumers C. An Internet services company that offers access to software applications and other services and charges on a usage basis D. Intel selling microprocessors to Dell E. A neighbourhood store that sells newspapers, magazines, and other items of interest to the locals In this case, Intel selling microprocessors to Dell is an example of business-to-business (B2B) marketing. B2B marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers. Therefore, B2B marketing involves manufacturers, wholesalers, retailers, and service firms that market goods and services to other businesses but not to the ultimate consumer.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-01 B2B Markets 3.

All the following companies are always operating in B2B markets, EXCEPT: A.A marketing consulting firm B. A point of sales service provider C. An oil refinery D. A wholesaler E. A travel agency Travel agencies could sell packages to both consumers and businesses. The other listed businesses always sell products/services to other businesses.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Difficult Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-01 B2B Markets

4.

A typical marketing channel consists of manufacturers, wholesalers, and retailers.

In a typical marketing channel what type(s) of transaction occurs?

A.B2B transactions B. B2C transactions C. C2C transactions

D. B2B and B2C transactions E. B2C and C2C transactions Manufacturers and wholesalers are involved in B2B transactions whereas retailers are engaged in B2C transactions.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-02 Manufacturers or Producers 5.

Which of the following statements is true about business-to-business (B2B) markets?

A.Institutions such as hospitals and prisons are excluded from conducting B2B transactions.

B. Distributors in a B2B market are those which usually buy raw materials, components, and parts that allow them to manufacture their own goods.

C. Usually, information about government buying can be obtained from Business Access Canada or from MERX. D. In a B2B market, resellers completely alter the form of the product before selling it.

E. In most countries, the central government tends to be one of the smallest contributors to the purchase of goods and services.

Information about government buying can be obtained from Business Access Canada or from MERX. MERX is the most complete source of Canadian public tenders, private tenders, U.S. tenders, and private-sector construction news available in Canada.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-05 Government

6.

Which of the following makes it possible for businesses of any size to have easy and affordable access to billions of dollars in contracting opportunities with the Government of Canada, the U.S. Government, and the private sector?

A.GPO B. SIC C. NAICS D. NAFTA E. MERX MERX makes it possible for businesses of any size to have easy and affordable access to billions of dollars in contracting opportunities with the Government of Canada, participating provincial and municipal governments, the U.S. Government, state and local governments, and the private sector.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-05 Government 7.

Which of the following statements is NOT true of manufacturers?

A.They are marketing intermediaries that produce the product B. They are usually producers of their own good and services.

C. Wholesalers, and retailers, are their classic customers.

D. They are usually engaged in B2B transactions.

E. They are the only marketing intermediaries that do not buy any product.

Manufacturers buy raw materials, components, and parts that allow them to manufacture their own goods.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-02 Manufacturers or Producers

8.

Which of the following marketing intermediaries resell manufactured products without significantly altering their form?

A.Gatekeepers B. Producers C. Buyers D. Wholesalers E. Users Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. For instance, wholesalers and distributors buy jeans from 7 For All Mankind and sell them to retailers (a B2B transaction), and retailers in turn resell those same jeans to the ultimate consumer (a B2C transaction). Wholesalers, distributors, and retailers are all resellers.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-03 Resellers 9.

Which of the following is NOT true of retailers?

A.They are business customers for wholesalers and manufacturers.

B. They are a form of resellers.

C. They resell manufactured products without significantly altering their form.

D. They are one of the largest purchasers of goods and services in most countries.

E. They are selling products to end consumers.

Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. For instance, wholesalers and distributors buy jeans

from 7 For All Mankind and sell them to retailers (a B2B transaction), and retailers in turn resell those same jeans to the ultimate consumer (a B2C transaction). Wholesalers, distributors, and retailers are all resellers.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Difficult Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-03 Resellers

10.

Which of the following is a marketing intermediary that deals with reselling a product without changing or modifying it notably?

A.Producer B. Consumer C. Distributor D. Initiator E. Gatekeeper Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. For instance, wholesalers and distributors buy jeans from 7 For All Mankind and sell them to retailers (a B2B transaction), and retailers in turn resell those same jeans to the ultimate consumer (a B2C transaction). Wholesalers, distributors, and retailers are all resellers.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-03 Resellers 11.

Terrance buys defective clothes that are stockpiled in warehouses of factories and sells them to retailers for a discount. Terrance is a(n): A.manufacturer.

B. initiator.

C. consumer.

D. gatekeeper.

E. reseller.

Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. In this case, Terrance is a reseller. Wholesalers, distributors, and retailers are all resellers.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-03 Resellers

12.

Perry Inc. is a global digital education firm that sources its content from multiple authors and publishers, and packages its products attractively to capture the target audience. Which of the following best describes Perry’s role?

A.Consensus buying centre B. Gatekeeper C. User D. Producer E. Reseller Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. For instance, wholesalers and distributors buy jeans from 7 For All Mankind and sell them to retailers (a B2B transaction), and retailers in turn resell those same jeans to the ultimate consumer (a B2C transaction). Wholesalers, distributors, and retailers are all resellers.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-03 Resellers 13.

In B2B transactions, hospitals, schools, and religious organizations are usually examples of: A.manufacturers.

B. users.

C. institutions.

D. gatekeepers.

E. resellers.

Hospitals, educational organizations, prisons, religious organizations and other nonprofit organizations are examples of institutions.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-04 Institutions

14.

In comparison with purchases made by government organizations, which of the following statements is true of institutional buyers?

A.They rarely disclose their purchase decisions and practices.

B. They are subject to heavy public scrutiny.

C. They are less likely to engage in reciprocal buying.

D. They usually opt for a supplier that quotes the highest price.

E. They traditionally make much larger purchases.

Institutional buyers, such as nursing homes and universities, tend to have relatively small budgets and therefore seek the best value when buying products and services for

their organizations. Governments consider a wide range of factors in their purchases and may not always purchase from the vendor with the lowest price. Institutional organizations are not under such public scrutiny and rarely disclose their purchase decisions and practices, although they may try to make their buying processes transparent.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-04 Institutions 15.

Which of the following is NOT an example of an institution buyer?

A.University of Lethbridge B. York Region District School Board C. Hospital for Sick Children D. St. Peter’s Roman Catholic Church E. Regional Municipality of Waterloo The governmental business category consists of federal, provincial, regional, and municipal governments.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-04 Institutions

16.

Which of the following tends to be the largest group of purchasers of goods and services in most countries?

A.Central governments B. Manufacturers C. Wholesalers D. Gatekeepers E. Retailers In most countries, the central government tends to be one of the largest purchasers of goods and services.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-05 Government 17.

Which of the following is the most complete source of Canadian public tenders, private tenders, U.S. tenders, and private sector construction news available in Canada?

A.Statistics Canada B. Business Exchange Magazine C. NAFTA D. MERX E. Business Access Canada Information about government buying can be obtained from Business Access Canada or from MERX. MERX is the most complete source of Canadian public tenders, private tenders, U.S. tenders, and private-sector construction news available in Canada.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-05 Government

18.

Government purchases differ from the purchases made by institutional organizations in that institutional organizations: A.make relatively large purchases and consider a wide range of factors in their purchases.

B. may not always purchase from the vendor with the lowest price.

C. need to make purchases that comply with the policy guidelines and trade rules set by the World Trade Organization.

D. have relatively small budgets and therefore seek the best value when buying products and services.

E. have to disclose their purchase decisions and practices to the public.

Institutional buyers, such as nursing homes and universities, tend to have relatively small budgets and therefore seek the best value when buying products and services for their organizations.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-05 Government 19.

The buying process of private-sector companies, such as manufacturers and resellers, differs from the buying process of governments in that private companies: A.have relatively big budgets and seek the best value when buying products.

B. are more likely to engage in reciprocal buying.

C. always opt for a supplier with a strong brand equity regardless of the price they quote.

D. must disclose their buying criteria and buying process to the public.

E. make purchases that comply with the policy guidelines set by the WTO. Private sector companies such as manufacturers, producers, and resellers are likely to engage in reciprocal buying, a situation where two companies agree to buy each other’s products as appropriate.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-01 Describe the nature and composition of B2B markets.

Topic: 05-06 Key Challenges of Reaching B2B Clients

20.

Which of the following is NOT true of B2C markets?

A.In B2C markets, consumers buy goods to satisfy their own individual or household needs.

B. In B2C markets, consumers are heavily influenced by price and personal tastes.

C. In B2C markets, the number of business buyers is substantially higher than in B2B markets.

D. Buying decisions in B2C markets are usually made by individuals or families and sometimes are unplanned or impulsive.

E. The demand for goods and services for B2C markets is often derived from B2B sales.

In B2C markets, consumers buy goods to satisfy their own individual or household needs and are heavily influenced by price, personal tastes, brand reputation, or personal recommendations of friends and family. In B2B markets, demand for goods and services is often derived from B2C sales in the same supply chain.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-07 Differences Between B2B and B2C Markets 21.

Which of the following best defines the linkage between consumers’ demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output?

A.Competitive demand B. Derived demand C. Latent demand D. Composite demand E. Negative demand In B2B markets, demand for goods and services is often derived from B2C sales in the same supply chain. More specifically, derived demand is the linkage between consumers’ demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-02 Explain the key differences between B2B buying and B2C

buying.

Topic: 05-07 Differences Between B2B and B2C Markets

22.

AutoParts Inc. is a firm involved in producing various electrical components used in the production of cars. The demand for its products is dependent on the demand for new cars. Which of the following best explains the demand for AutoParts’ products?

A.Latent demand B. Composite demand C. Negative demand D. Competitive demand E. Derived demand In this case, the type of demand that AutoParts Inc. deals with is derived demand. In B2B markets, demand for goods and services is often derived from B2C sales in the same supply chain. More specifically, derived demand is the linkage between consumers’ demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-07 Differences Between B2B and B2C Markets

23.

Jeans are very popular among North American teenagers. To meet the increasing demand for jeans, VogueJeans Inc., a popular jeans manufacturer, decides to purchase more raw materials from its suppliers to manufacture its jeans. This increased demand for raw materials caused by an increased demand for jeans is referred to as: A.competitive demand.

B. negative demand.

C. derived demand.

D. latent demand.

E. composite demand.

In this case, the type of demand that VogueJeans Inc. is dealing with is derived demand.

In B2B markets, demand for goods and services is often derived from B2C sales in the same supply chain. More specifically, derived demand is the linkage between consumers’ demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 05-02 Explain the key differences between B2B buying and B2C

buying.

Topic: 05-07 Differences Between B2B and B2C Markets

24.

Verdun Windows is the Canadian supplier of high-quality, energy-efficient windows for homes and offices. The housing boom in Canada in the late 1990s through the early 2000s resulted in a 500 percent increase in the amount of windows Verdun sold when compared to the period from 1990 to 1993, when the housing market was sluggish. This is an example of: A.derived demand.

B. competitive demand.

C. latent demand.

D. composite demand.

E. negative demand.

This is an example of derived demand. In B2B markets, demand for goods and services is often derived from B2C sales in the same supply chain. More specifically, derived demand is the linkage between consumers’ demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-07 Differences Between B2B and B2C Markets 25.

Which of the following statements does NOT describe a market characteristic of B2B buying?

A.More people are usually involved in B2B buying decisions.

B. The number of business buyers is higher than the number of buyers in B2C markets.

C. In B2B markets, buyers and sellers strive to develop close relationships with each other and find a win-win situation for both parties.

D. Demand in many business markets is inelastic.

E. The size of the orders is substantially larger than consumer purchases.

A characteristic of B2B markets is that the number of business buyers is substantially fewer than in B2C markets, and the business buyers are more concentrated in big cities, towns, and industrial areas. Also, the sizes of the orders are substantially larger than consumer purchases.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Difficult Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-09 The B2B Buying Process

26.

Which of the following statements describes the nature of products in businessto-business (B2B) markets?

A.The products sold in these markets are mainly finished goods assembled by firms.

B. The products are sophisticated and must conform to technical standards of the buyer.

C. There is no time-bound delivery of products in B2B markets.

D. Consumers buy the products from B2B markets for their own personal consumption.

E. Technical assistance and after-sale service is not mandatory for products in B2B markets.

In certain business-to-business (B2B) markets (e.g., aerospace, medical, pharmaceutical, shipping, defence), the products are very technical and sophisticated in nature and must conform to technical standards specified by the buyer.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-09 The B2B Buying Process 27.

Which of the following statements is NOT true about the nature of the buying process in B2B markets?

A.Reciprocal arrangements exist between the buyers and sellers.

B. The buying process involves qualified, and professionals buyers.

C. Online buying over the Internet is very common.

D. The buying efforts in these markets are less structured and formalized.

E. The buying process in these markets involves competitive bidding, negotiated pricing, and complex financial arrangements.

Most companies have formal policies and procedures to guide buying decisions that must be closely followed by the people involved in the buying decisions. The buying process in more complex, more structured and formal.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Difficult Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-06 Key Challenges of Reaching B2B Clients

28.

In business-to-business (B2B) markets, which of the following is a buying practice arrangement where two firms agree to buy each other’s products and services?

A.Impulsive buying B. Erratic buying C. Dissonance buying D. Reciprocal buying E. Variety-seeking buying

In a B2B environment, some firms may engage in reciprocal buying arrangements—a practice where two firms agree to buy each other’s products and services.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-06 Key Challenges of Reaching B2B Clients 29.

In most B2B marketing, which of the following is an integral component of the transaction?

A.The government B. Personal consumption C. Brand reputation D. The salesperson E. Personal tastes In most B2B sales, the salesperson is an integral component of the transaction.

Pharmaceutical manufacturers rely primarily on sales representatives to promote their drugs to doctors.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-02 Explain the key differences between B2B buying and B2C buying.

Topic: 05-07 Differences Between B2B and B2C Markets

30.

Rafael works as a sales representative for a firm that processes leather that can be further used to make bags, shoes, and seat covers. Rafael promotes these products to various car companies and bag manufacturers. In this context, what type of sales activity is practised by Rafael?

A.C2B B. Modified rebuy C. B2B D. B2C E. New buy In this case, Rafael is practising a B2B sales activity. In B2B markets, the products ordered are primarily raw materials and semifinished goods that are processed or assembled into finished goods for the ultimate consumers.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 05-02 Explain the key differences between B2B buying and B2C

buying.

Topic: 05-07 Differences Between B2B and B2C Markets 31.

The third digit in an NAICS code represents: A.the industry group.

B. the subsector.

C. a specific subgroup within the industry.

D. the sector in the economy.

E. the country-level industry.

Statistics Canada collects data about business activity in Canada through its classification scheme, which categorizes all firms into a hierarchical set of six-digit North American Industry Classification System (NAICS) codes. The first two digits represents the sector in the economy (e.g., 51 is the information sector); the third digit represents the subsector (e.g., 515 is “Broadcasting except Internet”).

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 05-03 Explain the ways B2B firms classify and segment their markets.

Topic: 05-08 B2B Classification System and Segmentation

32.

Which of the following classification systems can be quite useful to B2B marketers for segmenting and targeting markets?

A.GPO B. SIC C. NAICS D. NAFTA E. MERX The NAICS classification system can be quite useful to B2B marketers for segmenting and targeting markets. Statistics Canada collects data about business activity in Canada through its classification scheme, which categorizes all firms into a hierarchical set of six-digit North American Industry Classification System (NAICS) codes.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-03 Explain the ways B2B firms classify and segment their markets.

Topic: 05-08 B2B Classification System and Segmentation 33.

A manufacturing firm that has developed a new product can use the NAICS codes to: A.identify the type of firms that constitute its target market.

B. establish the potential banking partners.

C. foster long-term relations with buyers.

D. create mergers and joint ventures.

E. test the quality of its new product.

Using the NAICS data collected by Statistics Canada or the U.S. Census Bureau, the manufacturer could assess the number, size, and geographical dispersion of firms within each type, which might indicate both the product’s potential and the types of firms that constitute the target market.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-03 Explain the ways B2B firms classify and segment their markets.

Topic: 05-08 B2B Classification System and Segmentation

34.

The buying processes in both B2B and B2C markets begin with: A.central planning.

B. need recognition.

C. postpurchase dissonance.

D. alternative evaluation.

E. order specification.

The B2B buying process parallels the B2C process, though it differs in many ways. Both start with need recognition, but the information search and alternative evaluation stages are more formal and structured in the B2B process.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-10 Stage 1: Need Recognition 35.

Which stages in the B2B buying process are more formal and structured compared to the B2C buying process?

A.Sales strategy and postpurchase evaluation B. Customer value creation and government regulation C. Information search and alternative evaluation D. Need recognition and alternative evaluation E. Order specification and performance analysis The B2B buying process parallels the B2C process, though it differs in many ways. Both start with need recognition, but the information search and alternative evaluation stages are more formal and structured in the B2B process.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-07 Differences Between B2B and B2C Markets

36.

The first stage of the B2B buying process involves: A.consideration of alternative solutions to derive potential specifications.

B. posting of RFP needs on the company website to invite alternative suppliers.

C. analysis of RFP proposals.

D. vendor negotiation and selection.

E. need recognition through either internal or external sources.

In the first stage of the B2B buying process, the buying organization recognizes, through either internal or external sources, that it has an unfilled need.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-10 Stage 1: Need Recognition 37.

A construction firm realizes that suppliers have increased the prices of steel after doing a market analysis for the prices quoted by various suppliers for the same type of steel. Also, the firm is not satisfied with the performance of the supplier and decides to replace it. In the context of the business-to-business (B2B) buying process, the firm is currently in the stage of: A.proposal analysis.

B. RFP process.

C. need recognition.

D. supplier selection.

E. product specification.

The firm is currently in the need recognition stage of the B2B buying process. In the first stage of the B2B buying process, the buying organization recognizes, through either internal or external sources, that it has an unfilled need.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-10 Stage 1: Need Recognition

38.

CAMO Inc. is a firm that assembles desktop computers and buys components from various suppliers. The firm is not happy with the quality of one of the components and decides to replace it with a component that can improve the quality of its final product. The R&D department formulates the requirements for the desired component and posts it on the firm’s website. In the context of the B2B buying process, CAMO Inc. is currently in the stage of: A.order specification.

B. product specification.

C. RFP process.

D. need recognition.

E. proposal analysis.

CAMO Inc. is currently in the product specification stage of the B2B buying process.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-11 Stage 2: Product Specification 39.

Observing the after-effects of Hurricane Katrina, many states re-evaluated the requirements for construction materials used in coastal area building projects. Which of the following should vendors pay attention to regarding construction material requirements?

A.Derived demand B. Reciprocal buying C. Autocratic buying D. Product specifications E. Straight rebuys The vendors of construction materials will have to familiarize themselves with the changes in construction material requirements and use product specifications when they develop new products.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-11 Stage 2: Product Specification

40.

The stage of the business-to-business buying process in which companies invite alternative suppliers to bid on supplying their required components is referred to as: A.product specification.

B. proposal analysis.

C. supplier selection.

D. order specification.

E. the request-for-proposals process.

The request for proposals (RFP) is a common process through which buying organizations invite alternative suppliers to bid on supplying their required components.

The purchasing company may simply post its RFP needs on its website, work through various B2B web portals, or contact potential suppliers directly.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-12 Stage 3: RFP Process 41.

After need recognition and product specification, many firms using the businessto-business buying process: A.identify product specification assessed through cultural determinism.

B. issue a request for proposals from invited suppliers.

C. proceed to proposal analysis.

D. enter vendor negotiation and selection.

E. revise need recognition through either internal or external sources.

The third step in a business-to-business (B2B) buying process is the request for proposal (RFP) process. The RFP is a common process through which buying organizations invite alternative suppliers to bid on supplying their required components. The purchasing company may simply post its RFP needs on its website, work through various B2B web portals, or contact potential suppliers directly.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-12 Stage 3: RFP Process

42.

A mining corporation is negotiating the terms of sale with one of the vendors that has responded to its request for proposal (RFP). In which of the following stages of the business-to-business (B2B) buying process is this negotiation activity found?

A.Purchase B. Need recognition C. RFP process D. Proposal analysis and supplier selection E. Vendor performance assessment The buying organization, in conjunction with its critical decision makers, evaluates all the proposals it receives in response to its RFP.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-13 Stage 4: Proposal Analysis and Supplier Selection 43.

After posting a request for proposal (RFP) for telecommunication equipment, the Department of National Defence received six proposals from qualified vendors. With reference to the B2B buying process, in the next step, the Department of National Defence will most likely: A.recognize proposal obstacles that the firm must comply with.

B. revise need recognition through external sources.

C. invite alternative suppliers to bid on supplying what is requested.

D. proceed to vendor performance assessment.

E. evaluate the proposals and likely narrow the choice to a few suppliers.

According to the B2B buying process, the department of National Defence will most likely evaluate the proposals and likely narrow the choice to a few suppliers. In the fourth stage of the B2B buying process, a buying organization, in conjunction with its critical decision makers, evaluates all the proposals it receives in response to its RFP.

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 05-04 Describe the B2B buying process.

Topic: 05-13 Stage 4: Proposal Analysis and Supplier Selection

44.

What is the stage after proposal analysis and supplier selection?

A.Product specification B. RFP process C. Order specification D. Vendor performance assessment E. Need recognition After proposal analysis and supplier selection, the firm places its order with its preferred supplier. The order includes a detailed description of goods, prices, delivery dates etc.

Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 05-05 Identify the roles within the buying centre.

Topic: 05-14 Stage 5: Order Specification (Purchase) 45.

A group of people typically responsible for the purchasing decisions in large organizations is called a(n): A.sales team.

B. expert committee.

C. buying centre.

D. group of business experts.

E. core committee.

In most large organizations, several people typically are responsible for the buying decisions. These buying centre participants can range from employees who have a formal role in purchasing decisions (e.g., the purchasing or procurement department), to members of the design team that is specifying the particular equipment or raw material needed, to employees who will be using a new machine that is being ordered.

Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 05-05 Identify the roles within the buying centre.

Topic: 05-16 The Buying Centre